By Robb M. Stewart
Hudbay Minerals will boost its stake in copper explorer Arizona Sonoran Copper with a 19.9 million Canadian dollars ($13.9 million) investment that will help advance a copper project in Arizona.
Arizona Sonoran said the Canadian mining company agreed to subscribe for roughly 11.9 million shares in a private placement at a price of C$1.68 apiece. The investment will see Hudbay's stake rise from 2.1% currently to just shy of 10%.
The placement is expected to close on or about Jan. 30 and Arizona Sonoran plans to use the money raised for drilling, exploration, technical studies and advancement of the Cactus copper project in Arizona. The company plans to develop an open-pit mine on the land, which it says contains a large-scale porphyry copper resource.
Arizona Sonoran's shares last closed at C$1.43, down 12% over the last year.
Hudbay has agreed to subscribe for additional Arizona Sonoran shares to maintain a 9.99% interest in the event that pre-emptive rights held by certain other existing shareholders are exercised in connection with the private placement, Arizona Sonoran said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
January 09, 2025 06:53 ET (11:53 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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